BUDGET TO DRIVE INVESTMENT AND GROWTH
The 2016 Budget lays out a ten year plan to stimulate higher business investment that will drive growth and jobs according to the Australian Food and Grocery Council (AFGC) which represents Australia’s $119 billion food and grocery manufacturing sector.
AFGC CEO Gary Dawson welcomed the Budget’s focus on stimulating business investment through progressive cuts to company tax.
“In this budget the government has recognised the importance of confidence and certainty as a prerequisite for investment. By laying out a ten year plan to progressively cut company tax the Budget lays the foundation for higher economic growth and a pathway back to a balanced budget,” said Mr Dawson.
“Lack of investment, reflecting uncertainty and lack of confidence, is the biggest weakness in the Australian economy. Finding the right levers to build confidence and encourage higher business investment is critical and recognised by the government in the Budget’s centrepiece measures.”
“The business and personal tax relief has positive flow on effects through the food and grocery supply chain.”
“With wage growth forecast to remain weak, there is the risk that consumer spending may not provide sufficient kick to the economy, underlining the importance of increasing business investment to boost the productive capacity of the economy and drive growth and jobs, essential to bring the Budget back to balance.”
“The overarching priority of investment, jobs and growth must be carried through to other critical areas of government policy including foreign investment settings and regulatory reform.”
“Also welcome is the commitment to major infrastructure projects, including the inland rail link between Melbourne and Brisbane, to cut transport costs and boost efficiency, with particular benefits for the food and grocery sector given its strong regional presence,” said Mr Dawson.
AFGC Media Contact: James Mathews 0407 416 002